If Firms Pay What Are Called "Efficiency Wages," They Pay

question 146

Multiple Choice

If firms pay what are called "efficiency wages," they pay wages that

• A)motivate workers to increase their productivity.
• B)are lower than average to ensure maximum profit.
• C)will eventually lower the unemployment rate.
• D)are mandated by the government.
• E)negotiated by labour unions.

---

Definitions:

Perfectly Competitive Eatery

A theoretical model where a restaurant operates in a market with many buyers and sellers, none of which can influence prices.

Breakfast Special

A promotional deal or menu option offered by restaurants specifically for breakfast meals, often at a reduced price.

Costs

The expenses or value sacrificed in the production or procurement of goods and services.

AVC

Average Variable Cost, which is the total variable costs divided by quantity of output produced.